The last chapter presents an overview of all chapters covered in the book along with a recap of the most important subjects included in the chapters. Authors wrap up the all the fundamental financial concepts and name this chapter “Tying It All Together”. An index is included following the last chapter. | Chapter 12 Tying it All Together Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Review Hospitality Industry Financial Challenges Reading, Interpreting, and Analyzing Financial Statements and Management Reports Managing Working Capital Growing the Business Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Review Knowing the Sources, Types, and Costs of Capital Investment Analysis The Investment Package Crafting and Negotiating the Deal Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Hospitality Financial Challenges Labor intensive Fluctuating sales volume Low profitability Capital intensive Reliance on discretionary incomes A multi-faceted industry Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Accounting Standards Develop Standards Financial Accounting Standards Board (FASB) Securities and Exchange Commission (SEC) Generally Accepted Accounting Principles (GAAP) Govern all accounting and financial reporting Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Uniform Systems of Accounts Uniform System of Accounts for the Lodging Industry Uniform System of Accounts for Restaurants Uniform System of Financial Reporting for Clubs Other systems: Timeshare Condominium Health, racquet, and sports clubs Spas Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Income Statement Presents operating results over a specific period of time Sections of the income statement: Revenues or Sales Operating Expenses For hotel properties: Departmental expenses Unallocated expenses Capital Expenses or Fixed Costs Net Income or Profit and Loss Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Balance Sheet Provides a snapshot of a company’s financial position Categories of accounts: Assets Current Assets Fixed Assets Liabilities Current Liabilities Long Term Liabilities Equity Assets = Liabilities + Equity Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Statement of Cash . | Chapter 12 Tying it All Together Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Review Hospitality Industry Financial Challenges Reading, Interpreting, and Analyzing Financial Statements and Management Reports Managing Working Capital Growing the Business Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Review Knowing the Sources, Types, and Costs of Capital Investment Analysis The Investment Package Crafting and Negotiating the Deal Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Hospitality Financial Challenges Labor intensive Fluctuating sales volume Low profitability Capital intensive Reliance on discretionary incomes A multi-faceted industry Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Accounting Standards Develop Standards Financial Accounting Standards Board (FASB) Securities and Exchange Commission (SEC) Generally Accepted Accounting Principles (GAAP) Govern all accounting and financial reporting Copyright © .
